June 10, 2008
Taser Sharpens Their Aim for Growth
Arizona based, Taser International Inc. seems to be the focus of breaking news each time someone dies after being hit by one of it’s stun gun devices, which has made marketing their products seem as attractive as being jolted by one of the famous stun guns. This negative media attention paired with several product-liability and wrongful-injury lawsuits and the use of their devices being outlawed by various US and foreign governments had taken its toll on the self-defense company.
The results were a drop in earnings and damaged employee morale caused by massive layoffs after orders fell drastically. Amazingly, however, the company has experienced a drastic turnaround in recent quarters that executives credit to product-design changes, concentrated efforts in consumer education and a focus on breaking into key law enforcement and military markets at home and internationally.
In addition to attempting to reach professional markets, Taser has renewed its efforts to reach the average everyday consumer to develop an expanding market base. To answer the average customer’s desires, the company completely redesigned their consumer stun gun product. These redesigns, which were first introduced to the market last summer, have fueled Taser’s recent growth with sales growth at about 47 percent and profit more than doubling during the first quarter of 2008.
The company’s founders, brothers Rick and Tom Smith, started the company under the name Air Taser Inc. in 1993 with a product tailored toward the consumer. An interesting side note, considering the recent revival that their company has been fueled by the very source of their beginnings in the first place.
However, aside from the redesign of consumer products to attract greater sales, Taser maintains only 20 percent of the US law enforcement market and less than 5 percent in foreign markets. In order to penetrate more of those markets, the company formed an advisory group made up of former military, Secret Service, and law enforcement personnel to spur expansion into both governmental and military agencies.
To this end, Taser developed several new products specifically for their law enforcement and military market customers. One such product was the Taser X26, its newest law enforcement model, which shoots two darts connected by thin wires to a distance of up to 35 feet. This new gun emits up to 50,000 volts of electricity through the darts with some models available equipped with audio and video. Resulting sales of the X26 model went up 61 percent to $61.6 million in 2007.
But with the military and law enforcement markets clearly under control with such enormous growth, Taser once again turned its focus to the consumer market. In 2007, the company rolled out its Taser C2 model with much fanfare at the 2007 International Consumer Electronics Show.
When considering redesign of the C2, Taser completely revamped the gun’s physical appearance to less closely resemble a handgun. The new device looks like a trendy and colorful electric razor and at a much smaller size that easily fits inside any handbag. Taser also took the safety concerns of its critics into account and now ships them to customers in inactive mode. This ensures extra security by requiring new users to complete a background check online or by phone before the stun gun can be activated.
While critics may argue that Taser’s continued success remains to be seen, adaptability within their market and continued commitment to public safety ensure that they continue to be the most recognizable name in personal safety devices worldwide.
Filed under Articles, In The News by Joe Lau



















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